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Articles Tagged With: FHA Loan Approval

Buy Your First Home With An FHA Mortgage

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | more...

 

FHA Loans: Credit Score Tips

What is a good FHA loan credit score? In general, the obvious advice is to try to come to the home loan process with as high a FICO score as possible for best results. But not everyone has the advantage of an Excellent credit rating. What do future homeowners need to know about FHA loan requirements and their credit score? First, you should know that no two lenders are exactly alike, and it is a bad idea to assume you will get the same results from all of them. Don’t assume you can’t qualify for a loan–have a loan officer help you determine what kind of mortgage is right for you. FHA Credit Score Tip: Shop Around Why do we say “shop around” regarding FICO scores and FHA loans? Borrowers | more...

 

Comparing FHA Home Loan FICO Score Requirements

If you’re thinking about buying your first home, you’ll want to consider your options carefully, compare lenders, and compare loan products. No two home loans are exactly alike, and many borrowers find that some mortgage loan options are better for their circumstances than others. We examine some of the similarities and differences between FHA loan FICO score requirements and other types of home loans. Is an FHA mortgage right for you? Or do you qualify for other options in addition to an FHA mortgage? True or false? Your credit score is usually the first thing lenders check when you’re buying your first home. True! Your credit score is often the first thing lenders check. This highlights the importance of your credit score in the initial stages of applying for a | more...

 

What To Think About When Comparing FHA Lenders

Why do we say choosing the right lender for your FHA home loan is essential? Because no two financial institutions are exactly alike, you may find a lender willing to offer the type of mortgage you need at an affordable interest rate. But until you compare offers, how will you know if you have realistically set your price point and target interest rate? It’s not just whether the lender offers the type of FHA mortgage you need–such as an FHA condo loan or an FHA One-Time Close Construction mortgage. It’s also whether the lender is offering you a competitive interest rate.  When rates trend higher, does your selected loan officer reprice the interest rates or up the closing costs instead? If you don’t know, you won’t know how to compare | more...

 

Paying Off Your FHA Home Loan Early

Are you considering paying off your FHA home loan early? How much do you know about the process, how it works, and how to go about it? There’s more than one way to pay off your FHA home loan ahead of schedule. Take our quiz to see how prepared you are to begin the process. True or False: The primary motivation for homeowners to pay off their mortgage ahead of schedule is typically to qualify for a larger loan on a new property. Answer: False. While owning a home outright improves one’s financial standing, the most common primary motivations for early mortgage payoff are to save a significant amount of money on interest payments over the loan’s duration and to achieve the financial freedom of being debt-free sooner. True or | more...

 

Reasons You May Be Denied A Home Loan

Most borrowers are worried they may be denied a home loan for one reason or another. How much is the average house hunter in danger of getting turned down for a mortgage? That depends on the kind of real estate you are looking for, your recent credit activity, and other factors. In general, it will be harder to get a loan approved if one or more of the following apply to you (see below). You Have A Recent Adverse Credit Action On Your Credit Report You risk being turned down for an FHA home loan or any other major line of credit if you were declined credit, employment or insurance recently. You Have High Credit Card Balances Credit card balances above the 50% line (halfway to your credit limit) are | more...

 
Buying a House

What One Credit Reporting Agency Says To Do About Your Credit Scores

Your credit report and credit score are important factors in home loan approval. So what advice do the credit reporting agencies like Equifax, Experian, and TransUnion say you should do when planning to apply for a home loan? Knowing what credit score advice these three agencies offer is important–it’s good to think like a lender when applying for a large line of credit, and it is even better to think like the credit reporting agency in terms of what to do to prepare your credit ahead of your loan. What does Experian say about getting your credit ready for a home loan? Their official site reminds consumers that credit scores are an important aspect of home loan approval. However, those scores do not tell the entire story. Experian reminds us | more...

 
FHA Home Loan

Before You Fill Out FHA Home Loan Forms

Are you ready to apply for an FHA mortgage? You’ll want to make sure you have done a few important preliminary steps before you submit an application. The most basic thing to start with is knowing what type of home loan you need. If you plan to buy a condo unit your FHA loan will be a different variety than if you need to buy a manufactured home, for example.  That may sound like some of the most basic home loan advice out there, but what is not so basic is knowing that there are nuances for some of these loans you need to know.  A condo unit must typically be part of a project that is on or added to the approved list for FHA loans. But did you | more...

 
credit reports

Why You Should Monitor Your Credit As A First-Time Home Buyer

Are you a first-time home buyer interested in buying or building a home? New borrowers should monitor their credit for signs of identity theft, erroneous information, and outdated credit data; doing so improves your chances at home loan approval by ruling out issues that may be related to credit report problems that are not your fault. In 2025, monitoring these issues is more critical than ever. Some future homeowners already pay strict attention to their credit, but not everyone does. And they should–credit monitoring should play a crucial part of your preparation stages before applying for an FHA mortgage. The principles we discuss here can protect you when applying for any big loan, including cash-out refinancing. Regular Monitoring Eliminates Surprises Later Regular updates about your credit report reduce the chances | more...

 
FHA Rehab Loans

Why You Should Consider A Limited 203(k) Rehab Loan

Do you want to buy or refinance a fixer-upper home? The FHA 203(k) Rehabilitation loan and the FHA 203(k) Rehabilitation Refinance loan can help if you would rather buy a fixer-upper or renovate an existing home you’re living in as your primary residence. You don’t have to buy a property to use the FHA 203(k) rehab loan; you can use it to refinance your current home and get money to accomplish FHA and lender-approved improvements or other projects associated with remodeling or renovation. That said, not every borrower needs to fully refinance a home to repair or improve it. Are you thinking of smaller projects that don’t require a huge sum of money? The Limited 203(k) Rehab loan lets you accomplish smaller projects without committing to a full refinance or | more...